Write an elevator speech citing and defending your view

Assignment Help Finance Basics
Reference no: EM13897425

Q1. During a convention cocktail party you overhear a group of healthcare financial officers discussing ‘financing policy'. One finance officer wearing a black suit says that ‘control' is primary so debt should always be maximized. Another finance officer in a green sweater declares that ‘risk' is paramount and must be minimized. A third finance officer in a tracksuit insists that maximizing ‘income' is the only way to go.

Decide whether you agree with black suit, green sweater, or tracksuit. Write an elevator speech (10 sentences) citing and defending your view."

Q2. The following argument is made in support of ""black suit"". In 8 sentences, please state whether you agree or disagree with this argument, and why?

Personally, I think the debt argument is the most reasonable when trying to raise capital. It has significant advantages over equity, when done within reason.

1. Debt financing is generally available assuming your business has a good credit rating.

2. Interest payments and bank fees are tax deductible making them more efficient then equity. Costs for raising equity include legal, travel and accountant fees that are not tax deductible and can eat into 3-5% of the raise.

3. Debt is flexible with minimal initial cash flow impact can be short or long term based on the needs of the company. Equity is a long term commitment that cedes control of the company to others.

4. Debt has few compliance issues short of making the payments on time. Equity has cumbersome finance issues and regular reporting.

5. Risk - Debt can be a risk if the company becomes overextended and defaults. Careful debt capacity analysis prior to taking on additional loans help mitigate this risk.

Reference no: EM13897425

Questions Cloud

Determine is the oxidation state of the metal : Determine is the oxidation state of the metal in each of the following complexes. Draw ALL linkage isomers and stereoisomers for each complex CLEARLY showing enantiomers.
Template class definition : You have the following template class definition.  template  class mypair {
Invites user to enter a random string : Invites user to enter a random string of lower case letters 2)get the string on the same line as the invitation 3)checks correctness of input(if its only lowercase letters 4)computes number of letters that is not being used 5)program out puts the ans..
Approached to create a computer program : Your spouse's cousin's nephew's dog's trainer's best friend owns a restaurant.  That person is very bad at math and recently discovered that most customers have been significantly undercharged for meals. You have been approached to create a computer ..
Write an elevator speech citing and defending your view : Decide whether you agree with black suit, green sweater, or tracksuit. Write an elevator speech (10 sentences) citing and defending your view."
Use at least two programmer defined functions : C++ Using an input file similar to the one below, write a program to determine the highest concentration recorded and the number of days the photochemical oxidant concentration exceeded the standard; display number of days and percentage (based on th..
Design an application for the homestead furniture : Design an application for the Homestead Furniture Store that gets sales transaction data, including an account number, customer name, and purchase price. Output the account number and name, then output the customer's payment for each month for the ne..
Identify and classify the type of pericyclic reaction shown : Classify the sigmatropic rearrangement as an [n,n]-sigmatropic rearrangement, where n is an integer. Show how the classification is arrived at as part of your answer.
Prompts the user to enter the total number of cookies : 7. A box of cookies can hold 24 cookies, and a container can hold 75 boxes of cookies. Write a program that prompts the user to enter the total number of cookies, the number of cookies in a box, and the number of cookie boxes in a container.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd